Weekly Market Update - WE 14/08/23

In the ever-evolving world of cryptocurrencies, this week's developments are sending ripples through the digital landscape, capturing the attention of investors and enthusiasts alike. From delayed ETF applications to sports-centric Web3 ventures and innovative blockchain solutions, the crypto realm continues to undergo transformations on multiple fronts. We saw another relatively flat week after BTC/USD showed a muted reaction to the week’s United States macroeconomic data prints, holding firm near $29,400 — a key battleground between bulls and bears.

Market Highlights 

• Cathy Wood and Ark ETF Application pushed back!
• Move over Messi vision, it's time for Barca Vision - FC Barcelona's Web3 is back.
• Ethereum payments are too difficult Vis-à-Vis regular digital payments - Visa to work on making gas fees easier for the masses

Cathy Wood and Ark ETF Application pushed back!

The Securities and Exchange Commission is taking its time to review the application for the Ark 21Shares bitcoin exchange-traded fund (ETF). This review process isn't just for Ark; the SEC is also looking at applications from big players like BlackRock and Fidelity Investments.

The SEC has put out a call for public input on the Ark 21Shares Bitcoin ETF application, which is a standard step that adds a few more weeks to the decision-making process. 

They've got a total of 240 days to finalise a decision once they start reviewing an application. They're giving the public three weeks to share their thoughts on the proposal, followed by an extra five weeks to respond to those initial comments.

The filing from Ark Investment Management and 21Shares explains that they believe their proposal lines up with the regulatory requirements and that concerns about market manipulation are balanced out by the benefits of investor protection.

Now, Ark and 21Shares have been aiming for ETF approval since 2021. They gave it another shot earlier this year after a previous attempt didn't quite hit the mark with the SEC. The SEC has been cautious about approving bitcoin ETFs due to worries about market manipulation and making sure investors are well-protected.

If an ETF does get the green light, it could open the door for more people to trade and hold bitcoin's value without actually owning the digital asset itself.

Source: https://www.bloomberg.com/news/videos/2023-08-07/cathie-wood-on-bitcoin-etf-tesla-and-china-market-video 

What does this mean for you?

If these ETFs do get the thumbs up from the SEC, it could be a big deal for us retail investors. Why? Because it means we might have a simpler way to invest in Bitcoin's value without having to actually buy and store the digital asset. It's like having a slice of the investment pie without needing the whole pie!

Cathie Wood, the head of Ark Invest, is optimistic about these approvals eventually happening. She thinks that it'll come down to how well these ETFs are marketed and explained to us regular folks. She believes that there will be a bunch of similar ETFs, so the difference might be in how they're presented to us.

Move over Messi vision, it's time for Barca Vision - FC Barcelona's Web3 back project secures USD $132 million in funding.

The world game is a powerful force. 

The Premier League was back in action this weekend, Messi continued to single-handedly push football in the USA and somewhere Fabrizio Romano is announcing the next biggest signing. Not to be left out of the loop, Spanish football giant FC Barcelona announced a substantial investment from Libero Football Finance AG and Nipa Capital B.V. of approximately USD $132 million to advance their Web3 project, Barça Vision.

Now I know you're wondering what exactly is Barça Vision. Well, FC Barcelona has been hard at work designing and advancing an initiative to integrate digital content through Web3 and blockchain, including NFTs and the metaverse, or, Barça Vision! As part of its broader strategy to establish the digital Espai Barca. 

The aim is to bring together as many high-quality engagement tools as possible to create a modern innovation hub that connects both the physical revival of the sporting area and the digital world beyond.

What does this mean for you?

FC Barcelona has not been slow on the digitisation front and has advanced many blockchain and NFT initiatives over the last few years, proving that even some of the largest and most influential sporting clubs can adapt and grow in turn with supporting technology. FC Barcelona has been collaborating for some time now with the Chiliz blockchain with the creation of Ethereum-based FC Barcelona Fan Tokens (BAR) for its sports franchise and has even launched numerous NFT's to great success.

The most powerful engagement tools are those that bring together culture, passion and sentimentality and sport is the shining example of this. Football brings together global cultures, historical rivalries and never-ending memories of glory days past and throws them all together for the over 3.5 billion fans worldwide. Imagine then the power of connecting the latest and greatest sports precincts, state-of-the-art stadiums and Web3-based blockchain experiences that power the football faithful! 

Source: https://cryptomode.com/fc-barcelonas-web3-expansion-an-in-depth-analysis-of-the-latest-investments/ 

Ethereum payments are too difficult Vis-à-Vis regular digital payments - Visa to work on making gas fees easier for the masses

There's nothing I love more than paying gas fees for Ethereum transactions, said no one ever. Gas fees have always been a contentious point among crypto transactions, let alone trying to explain to someone who is new to crypto what they are and how they work. Visa is looking to help change this, well, at least the latter, by testing methods to allow users to pay gas fees through a Visa credit card! The often complex process for those just diving into the crypto world usually means deterrence and is a sticking point for many as they adapt to blockchain transactions.

Visa envisions a smoother process however, suggesting that it shouldn't be that hard and that there is still plenty that can be done to help bring user-friendliness to a blockchain platform like Ethereum for the masses! By leveraging Ethereum’s ERC-4337, users are able to pay gas fees with any ERC-20 tokens (not just Ethereum), meaning developers like Visa can build wallets that make paying gas fees in any tokens and even fiat possible. Leveraging that technology, Visa looks to enable Visa card payments directly for gas fees, using the ERC-4337!

What does this mean for you?

As with any transformative technology, there will always be a learning curve and we've talked about this before, however, what we are seeing as blockchain and crypto technology advances, is a willingness to shake off the old "too-hard" comment and instead adopt a "we can change this for the better" attitude. It is these types of moves that will enhance the accessibility and user-friendliness of blockchain-based transactions.

It makes sense that big brands like Visa are shifting their perspective as they see the benefit it brings not only their customers but themselves and we know businesses don't like to miss out on revolutionary change to the bottom line! Bridging the gap between the complexities of blockchain and the simplicity of fiat-based payments that Visa networks offer only solidifies their position within the payments space.